1:13 pm, October 3, 2016
VOLKSWAGEN Group of America has reached a $1.2bn (£932 million) settlement agreement with its franchised dealers over the diesel scandal.
Late on Friday the brand announced that it had finalised an agreement to resolve the claims of 652 VW-branded franchise dealers in the United States relating to TDI vehicles and other matters concerning the value of the franchise.
The dealers will receive on average $1.8 million (£1.3 million) over 18 months, under the settlement that, on August 25, was agreed in principle.
Under the proposed agreement, Volkswagen has said it will make maximum total of $1.208 billion in cash payments to eligible dealers and provide additional benefits to resolve alleged past, current and future claims of losses in franchise value.
The proposed agreement was filed on September 30 by the dealers’ council with the United States District Court for the Northern District of California and is subject to the approval of Judge Charles R. Breyer, who presides over the federal multi-district litigation related to the dieselgate.
Volkswagen has been clear in stating that the agreement is not intended affect any of its obligations outside the United States, where circumstances relating to diesel vehicles differ.
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